Fifth Circuit Denies CFPB’s Petition for Panel Rehearing in Credit Card Late Fee Rule Lawsui

On May 3, the U.S. Court of Appeals for the Fifth Circuit entered an order denying the CFPB’s (CFPB) petition for a panel rehearing and effectively setting the stage for a long-awaited ruling on a preliminary injunction in the ongoing lawsuit challenging the CFPB credit card late fee rule.

Oregon Enacts Bill Changing Debt Collection Practices

On April 4, 2024, the Oregon Governor signed Senate Bill 1595—the Family Financial Protection Act (SB 1595)—into law. SB 1595 increases the amounts exempt from execution by creditors, imposes new account review procedures for banks in responding to garnishments, and increases protections for debtors from unlawful debt collection practices. 

No one is using your Social Security number to commit crimes. It’s a scam.

The phone rings. Your caller ID says it’s the Social Security Administration. You hesitate. You’re not expecting a call from them, and you’ve heard about impersonation scams. But something inside you makes you pick up. And everything you’re about to hear is designed to scare you into doing whatever the caller says.

Fed’s Logan says US monetary policy may not be tight enough

NEW ORLEANS, Louisiana (Reuters) - Dallas Federal Reserve President Lorie Logan on Friday said it's not clear if monetary policy is tight enough to bring inflation down to the U.S. central bank's 2% goal, and it is too soon to be cutting interest rates.

Financially Struggling Consumers Twice as Likely to Hit Credit Card Limit

The December installment of PYMNTS Intelligence’s “New Reality Check: The Paycheck-to-Paycheck Report” series, “The Credit Card Use Deep Dive Edition,” drew from a survey of more than 3,200 U.S. consumers to examine their financial lifestyles and explore how they use credit cards to manage their cash flows to get by.

What is the lowest amount debt collectors will settle for? What experts say

Many Americans are struggling financially due to factors such as high inflation and correspondingly high interest rates, which increase the costs of financing. And, once you get into debt, it can be hard to get out, considering that you not only need to save up enough or divert money toward the initial amount owed but also need to pay interest on the balances you've been carrying. 

Gen Z Consumers Are Using Credit More, and Differently, than Their Millennial Counterparts at the Beginning of their Credit Journeys

Gen Z consumers are tapping into credit at higher levels than their Millennial counterparts did in the early stages of adulthood (ages 22-24). TransUnion (NYSE: TRU) released these findings today at the company’s 2024 Financial Services Summit, attended by nearly 300 global financial services executives. 

CFPB rule to save Americans $10 billion a year in late fees faces possible last-minute freeze

A Consumer Financial Protection Bureau regulation that promised to save Americans billions of dollars in late fees on credit cards faces a last-ditch effort to stave off its implementation.

Attorney General Bonta Announces $10.25 Million Settlement Against AT&T, Verizon, and T-Mobile for Misleading Advertising Practices

OAKLAND — California Attorney General Rob Bonta today, alongside a bipartisan, multistate coalition, announced a $10.25 million settlement with major U.S wireless carriers after an industry-wide investigation of misleading advertising practices. The settlement, which is subject to court approval, resolves the allegations that the carriers violated the Unfair Competition Law and False Advertising Law by engaging in deceptive and misleading advertising. 

Retail Shoppers Pay by Debit Card in Stores but by Credit Online

According to an October survey of more than 2,100 U.S. consumers, 44% of respondents had paid for their most recent retail purchase in stores via debit card, while 28% paid with a credit card.

CFPB’s Credit Card Late Fee Rule Could Create Buy Now, Pay Later Windfall

As Tuesday (May 14) looms, with a new rule from the Consumer Financial Protection Bureau (CFPB) slated to take effect that would drastically lower credit card late fees, several reactions might ripple across financial services.

Prepared Remarks of CFPB Director Rohit Chopra at the Joint Hearing on Airline and Credit Card Rewards Programs

Credit cards are the most common lending product in America, with more than 550 million cards in circulation and more than a trillion dollars in outstanding debt. Unlike mortgages or auto loans, where you typically know how much you’ll borrow and the monthly payment, credit cards are different. When you take out a credit card, you may have no debt at all. In fact, you may be primarily using it as a payment device with the goal of paying your balance off each month.

Empowering Privacy: FTC’s 2023 Update on Safeguarding Consumer Data

The Federal Trade Commission (FTC) has recently released its Privacy and Data Security Update for 2023, offering insights into its efforts to safeguard consumer privacy in an era of rapidly evolving data usage. The report highlights the FTC’s proactive stance in protecting consumers against indiscriminate data collection and exploitation by companies. 

With Landmark Price Transparency Law Set to Go into Effect July 1, Attorney General Bonta Releases Guidance for Businesses

OAKLAND — As the landmark price transparency law is set to go into effect July 1, California Attorney General Rob Bonta today released guidance to help businesses across the state comply with the new law. According to 2018 data from Consumer Reports, at least 85% of Americans have experienced a hidden or unexpected fee for a service, and more than two-thirds of those surveyed in 2023 said they were paying more now in surprise charges than they did five years earlier.

FTC to Host Compliance Webinar on Rule Banning Noncompetes

The Federal Trade Commission will host an online compliance webinar on May 14, 2024, at 11a.m. ET to provide an overview of the FTC’s final rule banning noncompetes, which will include information on how to comply with the rule after its effective date.

CFPB Report Highlights Consumer Frustrations with Credit Card Rewards Programs

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) issued a new report finding consumers encounter numerous problems with credit card rewards programs. Consumers tell the CFPB that rewards are often devalued or denied even after program terms are met.

Oregon Releases FAQs for Compliance with State Data Privacy Law

The resource covers data definitions and who is required to comply with the law, taking effect July 1, among other details.

Breaking the Nebraska Data Privacy Act: What Businesses Need to Know | Osano

It’s official: The Cornhusker State has a new data privacy law. The Nebraska Data Privacy Act (NDPA) is now among a growing number of state laws that companies must contend with in the absence of a federal law. This blog outlines the key provisions of the Nebraska Privacy Act and what it means for companies based in or doing business with consumers in Nebraska.

Fed Governor Lisa Cook Highlights Private Credit as Emerging Issue

Federal Reserve Governor Lisa Cook highlighted commercial real estate, private credit and cyber risks as potential issues. Speaking Wednesday (May 8) at the Brookings Institution in Washington, D.C., Cook provided a current assessment of financial stability and highlighted these issues as potential vulnerabilities.

Texans Credit Union Enters a New Era with Bold Redesign

RICHARDSON, Texas, May 8, 2024 /PRNewswire/ -- Texans Credit Union (Texans), a leading financial institution with a 70-year legacy of dedicated service to the North Texas community, proudly unveils its new logo. The redesign represents a bold step forward, embodying the organization's commitment to its Texas Instruments (TI) heritage, tradition, innovation and the vibrant spirit of Texas.

Americans Are Paying Off Credit Card Debt the Fastest in These States

In spite of record-high credit card debt of more than $1 trillion, many Americans are taking steps to reduce their debt. A recent GOBankingRates study showed that consumer debt decreased in 32 states plus the District of Columbia between the third and fourth quarters of 2023.

U.S. State AI Update: Utah Enacts First StateGenerative AI Transparency Law – California,Colorado and Connecticut Are Close Behind

On May 1, 2024, Utah’s Artificial Intelligence (AI) Policy Act (the “AI Policy Act”) took effect. The AI Policy Act is the first U.S. state law to impose transparency obligations on companies using generative artificial intelligence (“Gen AI”). Those obligations are particularly critical for any company or individual in a regulated industry, such as medicine or accounting. Penalties are up to $2,500 for each violation, and the law may be enforced by the Utah Division of Consumer Protection or the courts.

Attorney General Bonta to Congressional Leaders: Federal Data Privacy Law Should Set a Floor, Not a Ceiling

OAKLAND — California Attorney General Rob Bonta today led a multistate coalition of 15 attorneys general urging congressional leaders to remove preemption language in the current draft of the American Privacy Rights Act (APRA), a proposed federal data privacy bill. The preemption clause currently in the APRA would result in California’s landmark privacy law being replaced with weaker protections and would hamper the ability of California to adequately protect the privacy of its citizens in the future. 

CFPB Official Urges Consumers to Consider Small Credit Card Issuers

In the post, Julie Margetta Morgan, the CFPB’s associate director of research, monitoring and regulations, reminds readers that the top 10 credit card companies alone manage 83% of outstanding credit card debt and that many of the biggest card issuers offer cards that come with the worst terms, the highest interest rates and the steepest late fees.

New Report: Authorized Fraud Scams Damaging to Bank-Customer Relationships

Despite ongoing efforts to educate consumers on protecting themselves against financial crime, increasing authorized fraud and scam instances are nightmares for banks and their customers. Authorized fraud, which targets customers or bank employees, is particularly troubling.

With Landmark Price Transparency Law Set to Go into Effect July 1, Attorney General Bonta Releases Guidance for Businesses

OAKLAND — As the landmark price transparency law is set to go into effect July 1, California Attorney General Rob Bonta today released guidance to help businesses across the state comply with the new law. According to 2018 data from Consumer Reports, at least 85% of Americans have experienced a hidden or unexpected fee for a service, and more than two-thirds of those surveyed in 2023 said they were paying more now in surprise charges than they did five years earlier.

FTC to Host Compliance Webinar on Rule Banning Noncompetes

The Federal Trade Commission will host an online compliance webinar on May 14, 2024, at 11a.m. ET to provide an overview of the FTC’s final rule banning noncompetes, which will include information on how to comply with the rule after its effective date.

CFPB to distribute nearly $40 million to consumers misled by fintech company LendUp Loans

This month, 118,101 consumers who were deceived by LendUp Loans LLC will receive checks in the mail. LendUp Loans, headquartered in Oakland, California, offered single-payment and installment loans to consumers online and marketed itself as an alternative to payday lenders.

Pennsylvania Higher Education Assistance Agency, and National Collegiate Student Loan Trusts

On May 6, 2024, the Consumer Financial Protection Bureau filed a complaint and two proposed stipulated final judgments to resolve the Bureau’s claims against the National Collegiate Student Loan Trusts (the Trusts) and the Pennsylvania Higher Education Assistance Agency d/b/a American Education Services (PHEAA), respectively. PHEAA is a student loan servicer and has been the primary servicer for loans held by the Trusts since at least 2006.

CFPB Files Student Loan Servicing Enforcement Action

The Consumer Financial Protection Bureau filed two complaints and requests for relief against student loan servicers this week. “The National Collegiate Student Loan Trusts purchase and securitize student loans, and PHEAA (Pennysylvania Higher Education Assistance Agency) services the loans,” according to a news release from the CFPB.

Michigan lawmakers target predatory loan companies

Michigan legislators are tackling predatory lending practices, aiming to set standards for payday loans and maximum interest rates.

New York Fed Report Shows Loans Originated and Sold by Community Development Financial Institutions More than Doubled Over Four Years

NEW YORK—The Federal Reserve Bank of New York today released a report quantifying sales of loans by Community Development Financial Institutions (CDFIs). The report, “Examining the Origination and Sale of Loans by Community Development Financial Institutions,” finds the amount of loans originated by CDFIs more than doubled between 2018 and 2022, reaching $67 billion.

ARM Industry Claims a Mixed Bag in March

FDCPA and FCRA cases fell, while TCPA and CFPB complaints increased in March, according to the latest report from WebRecon.

CFPB Takes Action Against Chime Financial for Illegally Delaying Consumer Refunds

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) took action against Chime Financial for failing to give consumers timely refunds when their accounts were closed. Thousands of consumers waited for weeks or even months for balance refunds after closing their accounts - a failure that inflicted significant financial harm on consumers who did not have access to critical funds to help make ends meet.

Fifth Circuit denies CFPB petition for panel rehearing in lawsuit challenging CFPB credit card late fee final rule

In the lawsuit challenging the CFPB’s final credit card late fee rule (Rule), the Fifth Circuit has denied the CFPB’s petition for a panel rehearing to reconsider the panel’s order vacating the district court’s order transferring the case to the U.S. District Court for the District of Columbia and issuing a writ of mandamus directing the district court to reopen the case.

CFPB Files Student Loan Servicing Enforcement Action

The bureau alleges two student loan servicers violated the Consumer Financial Protection Act.

March 2024 Consumer Litigation Filings: Mixed Bag for New Filings, Complaints Still Up YTD

According to a recent report by WebRecon, court filings under the Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act (FCRA) were down for the month of March while court filings under the Telephone Consumer Protection Act (TCPA) and complaints filed with the Consumer Financial Protection Bureau (CFPB) were up. Year-to-date everything is still up by double digits compared to 2023, including a notable 60.4% increase in CFPB complaints.

US banks report weaker loan demand, Fed survey says

(Reuters) - U.S. banks reported renewed weakening in demand for industrial loans and a decline in household demand for credit in the first quarter of the year, according to a Federal Reserve survey of senior loan officers published on Monday.

Judge’s Decision on Blocking CFPB Credit Card Rule Due by Friday

A ruling in a case that could overturn the Consumer Financial Protection Bureau’s rule on credit card late fees is due this week.

Businesses struggle to adjust as FTC rule bans noncompete agreements

(CN) — The Federal Trade Commission’s decision to invalidate virtually all employee noncompete agreements — including ones already in place that cover 30 million workers — will mean big changes in the workplace as businesses seek new ways to protect themselves against employees taking valuable information when they leave to join a rival.

Senator Liz Boldon Celebrates Senate Passage of Minnesota Debt Fairness Act and Mental Health Legislation

ST. PAUL, Minn. — In the early morning of Saturday, May 4th, the Minnesota Senate passed Senate File 4699, the Health and Human Services omnibus bill, which contained several pieces of legislation authored by Senator Liz Boldon (DFL-Rochester). Most notable, the bill includes provisions from her Minnesota Debt Fairness Act and several proposals relating to mental healthcare.

Agencies Issue Proposal on Incentive-Based Compensation

(May 6, 2024) – The Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Housing Finance Agency (FHFA), have adopted a Notice of Proposed Rulemaking (NPR) to address incentive-based compensation arrangements, as required under section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (section 956). The National Credit Union Administration (NCUA) is expected to take action on the NPR in the near future.

Data Security Is Top Priority as Payments Enter Zettabyte Era

You’ve probably heard it before, but data is undoubtedly the oil of the 21st century. And, just like oil, any data breaches or the equivalent “spills” of consumer information can be damaging to both businesses and their ecosystems. 

CFPB Takes Action to Require National Collegiate Student Loan Trusts and Pennsylvania Higher Education Assistance Agency to Pay More than $5 Million for Student Loan Servicing Failures

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today took action against the National Collegiate Student Loan Trusts and Pennsylvania Higher Education Assistance Agency (PHEAA) for multi-year servicing failures. The National Collegiate Student Loan Trusts purchase and securitize student loans, and PHEAA services the loans. 

CFPB Homes in on Mortgage “Junk Fees”

Recent releases from the Consumer Financial Protection Bureau (CFPB) show that the mortgage industry is in the crosshairs of the CFPB's campaign against so-called junk fees.

CFPB Alleges Organizations Ignored Student Loan Borrowers’ Payment Relief Requests

The Consumer Financial Protection Bureau (CFPB) has filed a complaint against the National Collegiate Student Loan Trusts and Pennsylvania Higher Education Assistance Agency (PHEAA), alleging that they ignored student loan borrowers seeking payment relief.

Statement of CFPB Director Rohit Chopra, Member, FDIC Board of Directors, on Proposed Rules Regarding Wall Street Compensation and Bonuses

The law requires that the Federal Reserve Board of Governors, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration, the Federal Housing Finance Agency, and the Securities and Exchange Commission implement rules prohibiting compensation arrangements that encourage inappropriate risk-taking. The rules were supposed to be completed thirteen years ago.

Arizona Court of Appeals Affirms Constitutionality of New “Predatory Debt Collection Act”

Last summer we wrote about the notable questions of the applicability of Arizona Proposition 209, or the Predatory Debt Collection Act (the Act), due to the Act’s savings clause. On April 30, 2024, in a blow to the debt collection industry, the Court of Appeals affirmed a trial court’s ruling that the Act was in fact constitutional despite a challenge.

Trades weigh in on BOI data collection, credit union tax exemptions

Financial trade organizations have their sights trained on several pressing regulatory issues that were not as widely publicized as others but are still critical to their operations. In this roundup, we examine what some of the largest associations representing banks and credit unions have to say about potential rulemaking activities and pending legislative matters that could affect their members’ businesses, detailed below:

FTC Highlights Privacy and Data Security Work

The report details agency actions related to AI and health privacy, as well as Fair Credit Reporting Act enforcement.

J.D. Powers: Consumers losing trust in big banks

Consumer trust in the nation’s largest retail banks has declined significantly during the past two years due to unexpected fees, poor customer service, and bad press, according to the J.D. Power 2024 U.S. Retail Banking Satisfaction Study.

Daily Decision Recap: Misleading Emails, Confusing Letters and More

Each week, ACA International’s compliance team covers relevant case summaries for ACA members. Here’s a rundown of recent top FCRA, TCPA and FDCPA cases we’ve covered.

Consumer Financial Protection Bureau Releases Final Rule Limiting Credit Card Late Fees

In March the Consumer Financial Protection Bureau (CFPB) announced a final rule intended to limit late payment fees on consumer credit cards distributed by the larger credit card issuers (the “Final Rule”). The Final Rule, which takes effect on May 14, 2024, marks a pivotal shift in the CFPB’s regulation of credit card fees. 

BetterHelp Customers Will Begin Receiving Notices About Refunds Related to a 2023 Privacy Settlement with FTC

About 800,000 people will begin receiving notices today that they are eligible for refunds stemming from the Federal Trade Commission’s 2023 settlement with BetterHelp related to allegations that the online therapy firm used and shared consumers’ health data, including sensitive information about their mental health, with third parties for advertising.

Court rejects effort to void law protecting Arizonans from creditors

PHOENIX - The state Court of Appeals has rebuffed efforts by lenders, debt collectors and attorneys to void a voter-approved law designed to protect Arizonans from creditors.

Let’s talk about spam texts and emails

Another day, another round of spam texts and emails trying to sell you things. At best, spam is annoying. At worst, it’s pushing scams or trying to install malware on your device. If you’re tired of getting spam, there are some ways to help.

Federal Court Ruling on Language Accessibility in New Jersey’s Fair Credit Reporting Act

A federal district court recently addressed a complex issue involving New Jersey’s Fair Credit Reporting Act and its implications for national credit reporting agencies (CRAs). The law, amended in 2019, mandated that CRAs provide credit file disclosures in English, Spanish, and at least 10 other languages upon consumer request.  However, this requirement faced legal challenge from the Consumer Data Industry Association (CDIA), representing major CRAs like Equifax, Experian, and TransUnion.

Collection and Recovery Solutions 2024

CRS2024

Webinar – Bankruptcy Filings: The New Normal or the Calm Before the Storm?

WEBINAR 2:00 pm - NACTT Academy

RMAI 2024 Executive Summit